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Midwest Motoplex suit alleges police violated civil rights

In February 2013, Carey Ackley talks to customers inside of Midwest Motoplex at Shawnee Square. Ackley and shop co-owner Tracy Bettendorf allege the business failed because Chillicothe police unlawfully searched and seized equipment from the shop and their home in January 2016.(Photo: Gazette file photo)Buy Photo

Tracy Bettendorf and Carey Ackley contend in the suit items seized during the search of Midwest Motoplex in Shawnee Square and their home at the time on Yaples Orchard Drive “crippled” their business and so harmed their reputation in the community they moved out of state – they currently reside in Anna, Texas.

Police Chief Keith Washburn and Mayor Luke Feeney declined to comment on the search warrants due to the pending suit, which was filed in federal court in August. The city has yet to file a response in court to the suit.

Chillicothe Law Director Sherri Rutherford also declined to comment on the suit and rejected a Gazette request for records including initial incident reports relating to the investigation, body camera and cruiser video, and copies of correspondence from Midwest Motoplex relating to the seized property.

"The records cannot be released as they relate to a pending lawsuit and an open criminal investigation," Rutherford said in an email.

The suit indicates there were eight letters sent to the city during the months after the search warrant was served "regarding the return of seized property and the irreparable harm being caused by it (SIC) continued unlawful seizure."

Included with the suit are copies of the search warrants and the information used by police to secure the warrants from Chillicothe Municipal Court Judge John Street.

According to the warrant:

Police received a complaint from a customer alleging he’d paid $1,220 for an extended warranty and discovered it was fraudulent when he attempted to use it. After contacting Ackley, he alleged he was given a different warranty number which he couldn’t use because it belonged to another customer.

An employee with a New York business lender contacted police after reviewing a $177,500 loan about to go into default that Ackley applied for in 2012. He alleged a tax document appeared to be fraudulent.

The same lender contacted police again alleging Ackley had used the social security number of a dead Colorado woman on an application for a different loan.

Police received a complaint from a customer alleging she never received a $34.99 part for which she paid on Jan. 7, 2016, and, as of Jan. 13, 2016, the business wasn’t answering calls, was locked, and appeared to be out of business.

The suit alleges on Jan. 15, 2016, at least a dozen officers with up to 10 vehicles including a crime scene van descended on Bettendorf and Ackley’s home and forced entry, detaining everyone in the home including children.

The suit also alleges there was paperwork regarding the consumer issues left behind by police. While the paperwork wasn't included with the suit, it does include a copy of an IRS letter dated Jan. 22, 2016, with the business’ employee identification number which matches the social security number Ackley gave on the loan.

Computers and other electronics, including the business’ point of sale system, were seized by police and allegedly haven’t been returned and no criminal charges have been pursued. Bettendorf and Ackley allege investigators haven’t talked with them either despite their willingness during the searches to cooperate, and the loss of their equipment led to the failure of the business.

The suit alleges the police department's actions were due to inadequate training, supervision, investigation, and a "custom of ratification of the conduct of Chillicothe police officers who unreasonably and unlawfully arrest, search, seize and detain citizens."

At the time of the search, court records indicate the business already was in the midst of financial difficulties. Two months before the search, Nextgear Capital had filed a suit and ultimately Midwest Motoplex was ordered to pay $109,222.29 plus taxes, according to court records.

Less than a month before the search, Midwest Motorplex's landlord filed for eviction in Chillicothe Municipal Court on Dec. 30, 2015. It was the second time an eviction was sought for the business, the first being in 2011 - the same year the business was incorporated - but it was dropped by the landlord, according to court records.

In March 2016, landlord Chillicothe Shopping Center also filed suit and the following August Midwest Motoplex was ordered to pay $35,092.50 plus 18 percent interest.

The suit was one of 13 the state filed that year to recoup money paid out from the title defect recision fund and the state sought reimbursement related to payouts from the fund to four consumers.

While the suit listed four consumers, all but five of 41 complaints made to the Attorney General's Office about Midwest Motoplex between August 2013 and May 2017 related to title issues. The other complaints related to issues with product or service delivery, billing, and warranty.

According to Jones, while the office had previously attempted to work with Midwest Motoplex through its informal dispute resolution process it had not attempted something like a pre-suit negotiation prior to filing suit.

A review of the suit's case file shows state prosecutors had difficulty locating Bettendorf and ultimately filed for default judgment in April 2017. Bettendorf never filed a response to the state's suit.

Visiting Judge Leonard Holzapfel granted the default judgment and ordered Bettendorf and Midwest Motoplex to pay a $10,000 penalty for violations of the consumer sales act and reimburse the state’s title defect recision fund $6,315.61.

Holzapfel’s order also prevents Bettendorf from engaging in any consumer transactions in Ohio as a supplier and bars her from being able to get a license as an auto dealer or salesperson.

Bettendorf was given seven days to pay the state but the Attorney General’s Office reported this month nothing has been paid and it has been turned over to a collections agency. Court records indicate court costs related to the Attorney General’s Office suit also are unpaid.